Welcome to DreamTai Stock Trading Software blog.
Here, DreamTai members can post their views, ideas, opinions and list of stocks which they like and which have given a Buy Signal or Sell signal by DreamTai stock Trading Software.

Naturally, when markets go up or down, people look for cause and effect. We went up because of X, or we went down because of Y. The market liked this or it did not like that.

But in many cases (and I would argue, in most cases), PRICE is the cause. More transactions occur because the price changed than because the news changed. We can rationalize and reason and assess all we want. When we actually push buy or sell, we care most about PRICE. Because whatever our reasoning, at the end of the day, month, or year, the only reason we are successful is because of PRICE. Not because of the reasoning. Not because of the news. Not because of Ben Bernanke, or Mario Draghi, or Shinzo Abe. Because of PRICE.

That’s why there are successful traders who don’t even pay attention to the news. They don’t care about the why of PRICE. They only care about PRICE. And they react accordingly.

There are those who would convince you that it is somehow smart or in your best interest to be manically switching your investments around, back and forth, long and short, on a daily basis. To pay attention to this kind of overstimulation is the height of madness, even for professional traders.

WASHINGTON (MarketWatch) - The U.S. national debt is now about 73% of gross domestic product, the Congressional Budget Office said Tuesday. The percentage of debt is higher than any point since around World War II, and twice the percentage it was at the end of 2007, the nonpartisan agency said in its long-term budget outlook.

If current laws stay in place, debt will decline "slightly" relative to GDP over the next few years, the agency said. But it warned that growing future deficits will push the debt to 100% of GDP 25 years from now.

1. The stock was in an uptrend. Notice that the stock is moving up in a smooth uptrend. What does that mean?
That means that the Big Boys ( Hedge funds, Investment Banks, Financial Institutions ) are acccumulating the stock.

2. The DreamTai Power Ranking was above three. That means that the Big Boys were buying the stock in LARGE VOLUME. The fact that they were buying in large volume means that they were dead serious about this stock.

3. The stock formed a triangular wedge. This gives us a good opportunity to buy as soon as the stock goes above the wedge.
I got the stock at 23.89 right when it jumped above the wedge.

It is losing money, but i have no regrets and no worries, because I have my risk under control. I have put stop loss sell orders and I know the maximum amount of money I will lose.
So, I can sleep at night without any worries.

I purchased the stock at 32.62. The reason was that:

1. The stock was going up in a smooth manner.
2. The DreamTai Stock Trading Software had a Power Ranking of more than 3, which showed that there was high buying volume.

So, I purchased it. But within the next few days, the stock turned downwards.

It is moving down in a triangular wedge pattern. It has support at 26.5 area, so I expect it to bounce from there.
It has previously bounced more than 6 times from that area.

If this stock goes below this area of Support, I will get out of this stock and focus on other stocks.

That's life and that's trading..we win some. we lose some..As long as we control our risks, we will win in the long run.

In this post, I wanted to share some of my trades along with a commentary on why I had traded these stocks.

I will focus on one of the trades I made: APFC.

Reasons for entering the trade:

Here are the reasons that I had entered the stock.

1. If you look at the chart, the stock is in a steady uptrend.
This is a very good sign. It means that the stock is being accumulated by the big boys- hedge funds, banks, financial institutions.

Note that it retraced for some days, a few times, but went back up immediately. This shows that it is a strong stock.

2. At the time of purchase, DreamTai trading software was showing that this stock had power ranking greater than 3, which implies that there was strong buying volume.

3. The stock broke out of a triangular wedge formation.

4. The stock broke out of 30, which is a round number. Usually round number offer resistance and stocks bounce down from the round numbers.
You notice that there was a confluence of two factors: A triangular wedge and the round number, both of which could push the stock down.
But the stock was so powerful that it pushed through both these and bounced up.

I bought 60 shares at $29.60 for this stock account.

Trade Management:

I have put a stop loss sell order for half of the position at $44.
And moving the stop order for the other half to breakeven..that is $29.60.

Why did I take $44? Because that is around 32.8% Fibonacci retracement from the bottom to peak.

What's next?

Who knows?.But as traders, we have to be prepared for anything.

Don't be in a hurry to sell and take profits. Let the stock take its own time to go up.